Finance sector may have a bullish breakout

The Finance index surpassed its recent high of 10,765 recorded on Feb 23 when it closed at 10,812 on last Friday (May 4). On closer examination, we can see that the MACD has nearly done a positive crossover. The last time the Finance index surpassed its recent high (and, accompanied by a positive MACD crossover was on Jan 9), it gained 21% from 8,919 to 10,765 in just 1 & 1/2 months' time. There is a good chance that we might be seeing a similar strong rally, which should lift up many stocks in that sector. A few finance stocks have already started moving, such as Commerz & PBBank. I expect Maybank to join in short.


Chart: Finance's daily chart as at May 4 (courtesy of Quickcharts)